I think you may have confused aspect ratios Baradagi...
'Scope [CinemaScope/Panavision - Toho amended the name (a common thing by many studios) to Tohoscope for their movies] is nominally 2.35:1. Toho's original ratio for Mothra vs Godzilla.
1.78:1 is another name for the 16:9 aspect ratio [standard for video] - so this is what they're have/will be transferring to video.
Someone [or a group] have put together a great article on various all the aspect ratios. Interesting read - particularly when they detail many/all of the different ones that have been used.
http://en.wikipedia.org/wiki/Aspect_ratio_%28image%29
Interesting, I never knew that the print Scimitar used had those issues with it [aside from the 'faded' color]. Makes sense then to have used the 16:9 materials then, even if we lose some of the image on either side. It's a pity they didn't find good materials in the full aspect ratio.
I think I'll send Classic Media a polite letter/e-mail about ensuring the future G movies released use the correct aspect ratio.
I still plan on getting these DVDs - it's been great reading about all the care CM is taking to give us good quality releases of these movies.